Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

But if it was me - - - would I have worked an extra year for $4K/year, if I was already FI? Nope, no way, not for all the tea in China. In fact, I retired on the first day I had retiree medical, even though my pension was reduced due to being 61.5 instead of 62 years old. I don't regret it a bit either.

__________________

__________________"You can never cross the ocean until you have the courage to lose sight of the shore." - - - C. Columbus

Ronstar - that is an age old question. You presented it as only one more year. What can happen is that, a year from now, you (or she) end up asking.... should I stay one MORE year? And so on. That actually happend to a fella where I used to w*rk. Around 1990 "Bob" - who had been w*rking since 1959 (31 years) was down to "this quarter or next" and it always turned out to be ... "one more quarter". Until the day he had a massive coronary at work. Retired that day, heart transplant as soon as possible, and a way different retirement than he had planned.

Remember, one more year working is one less year retired. Out of "how many"? Who know. But it absolutely is one less.

I am currently 58. I semi-retired 2 1/2 years ago. I don't have a pension. But, I calculate that between the part time work that I did last year and the part time work I will do this year it will equate to us having about another $4k a year from then on. I guess I must feel it is worth it since I'm doing it.

As time goes on, I do think more about whether it is worth it and for how long. Things that I consider. How onerous is the work and how much do I want that extra money.

For us - the extra money would be nice but would provide extras not essentials. But those extras would be nice to have. However, I do have the benefit that only work 1 or 2 days a week, the work I'm doing is the parts of my job that always liked (the semi-retire part of it all means I get to pick and choose the type of work I want to do). As I continue on, my BS tolerance is very low. That is, at this point, any significant annoyance would cause me to quit. So far - that hasn't happened and so I keep on. However, I am pretty much willing to quit at any minute if things were to change....

What I don't know in your wife's situation is how need (or desire) for the money balances out versus whatever is onerous about working....

Yep, I agree with above, it's a personal decision. Is the money necessary for your retirement dreams and goals or just extra padding to be stuffed in the vault? My experience was this. At year 25, I could retire with pension, but the math didn't work for me to retire and have any extra money at all. I went three more years, as 28 provided me the cover I needed. If I had went two more years it would have added about 10k more before taxes to my pension, but I had reached the point that the money wasn't worth it. Simply had enough of being "the boss" and wasn't going to hang around and do a poor job just for the money.
I am 10 years younger and value each hour of free time I get. At 58, I am sure I would hold them even more precious. But that is of course how important the $4k is to enjoying my retirement years.

- Does DW enjoy her work? If the work is not bad with alot of social benefits, it might be worth staying.

- Do you have any plans that she can not participate in because of work? Some long term employees have extensive vacation/sick/personal/comp time banks. I've known people to take every Friday and Monday off for 6 months, so time can fly along with several week long vacations.

How much surplus do you have now in your budget? With belt and suspenders, the $4k might not mean anything, however donating extra to charities each year might have alot of meaning.

Does she have something to retire to or will she be home more bored than actively enjoying something? It's the emotional side of being ready to retire. To me, that's the important wild card.

Disclaimer - I'm 43, working, but FI with young kids. I've reduced my work stress and enjoy what I do, so I'm planning for extras for myself/DW and kids in my future ER. YMMV. Good luck.

DW could retire now with a pension and health care at 58. Or she could work another year to max out the pension at $4k more per year than it is now.

She wants to know- Would you work (or have worked) another year for an extra $4k per year for life?

Perhaps I'm risking excommunication from this early retirement forum for saying so, but to me the decision to stay the extra year would be easy. The way you present it, it's not a case of falling into "just one more year" syndrome, but working a strictly limited time towards a more secure retirement, with a significantly enhanced standard of living waiting at the other end. I gather that once she "maxes out" her pension in a year, there would be little or no increase in the future. If so, she would be passing up perhaps $4k per year over a 30 or 40 year retirement in addition to her regular salary for the extra year of work - easily a six figure amount that's available this year only, not in future years. Even working the extra year leaves her at a youthful 59. That may not be a particularly young retirement age for the members of this forum, but this is hardly a representative sample of the general population. I would walk away, but only after getting the most out of my career, and maxing out my pension certainly qualifies as a goal worth achieving.

At 55, each additional year I worked would add ~$4k/yr to my pension, plus another $60k into the savings pot. However, we were comfortably FI, and getting to 55 had secured retiree HI, so there was no way I would have worked another year.

However, it is a very individual decision. Good luck to her in her choice, whatever it may be.

__________________Retired in Jan, 2010 at 55Now it's adventure before dementia

Thanks everyone! I shared your thoughts with DW. Some yes's, more no's. She appreciates your comments, and is still undecided.

I told her that we have expenses covered if she decides to retire now, and that she can keep the extra $4k as more of her spending money if she decides to continue working. My guess is that she wants to get as much $ from megacorp, and she's willing to stay on one more year to do so. She enjoys her job most of the time.

She says that the extra year would be easy since I would be doing all of the housework. I don't remember this being part of the deal.

She wants to know- Would you work (or have worked) another year for an extra $4k per year for life?

__________________Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.

She says that the extra year would be easy since I would be doing all of the housework. I don't remember this being part of the deal.

That does change the equation, at least for her. Presumably she will share at least some of that $4k/year with you.

BTW, this issue is the reason I'm still working so I guess it makes it worthwhile to me. But it's a low-stress job, short commute, easy-going boss, etc. so no real reason to bail ASAP. Change any of those factors and I'm done though.

she wants to get as much $ from megacorp, and she's willing to stay on one more year to do so. She enjoys her job most of the time.

We too have just met with DW's HR rep to run the numbers, and she's leaning towards another year with the job she (mostly) likes. She reports that just knowing that she has the option/luxury of saying "see ya" between now and then makes the occasional work-related slings and arrows that much easier to brush off.

Quote:

She says that the extra year would be easy since I would be doing all of the housework. I don't remember this being part of the deal.

I too, as I am retired a year, am among the "house-b*tch" brethren, and have absolutely no problem with that. I figure it's only fair, as DW had been doing most of it while also working full-time prior to my retirement. (And now I get to set things up the way I like it.)

However you two choose, I wish you the best!

__________________"The future's uncertain, and the end is always near. Let it roll, baby, roll." - The Doors

Latest Threads

Social Knowledge Community

About Us

This community was started in 2002 as an alternative to a then fee only Motley Fool. The focus of the discussions is on topics related to early retirement and financial independence. The community is moderated to ensure a pleasant experience for our members.